Analysts say Apple could convince people to buy the $1,260 iPhone by giving them free Apple Music

Analysts from Barclays speculated in a note published on Thursday that one way Apple could convince customers to buy its upcoming $US1,000 ($AU1,260) (£776) phone is through bundling the device with its Apple Music streaming service and increased iCloud storage space.

The Barclays analysts suggested that including a free year of Apple Music and 200GB of iCloud storage could make Apple $US9.8 billion (£7.6 billion) in extra iPhone revenue in 2018.

The upcoming redesigned iPhone will likely sell for at least $US1,000. That’s a substantial increase from previous iPhones.

So Apple may need to include a sweetener with the iPhone 8 to convince people to pay the extra $US300 (£233). Sure, the new phone will reportedly have a new design, larger screen, and facial recognition. But that price bump could be a stumbling block for a large number of customers.

Here’s a chart from Barclays which shows how the proposed iPhone/Apple Music/iCloud bundle could work:

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